ALERT & Managing Collateral SSI

Regulatory reform in the OTC derivatives market has led to a mandatory requirement that derivatives trades are backed by collateral. Margin requirements for non-cleared derivatives recommends firms to post initial margin by T+1. In addition, both buy and sell-side firms are required to exchange variation margin daily, leaving market participants with the huge operational task of preparing for the future.

The Depository Trust & Clearing Corporation (DTCC) and DTCC-Euroclear Global Collateral Ltd (GlobalCollateral) can ease this burden: The collateral standing settlement instruction (SSI) functionality in ALERT® allows Global Collateral’s Margin Transit Utility (MTU) to electronically pull collateral SSIs from its database, helping clients with their initial and variation margin movements and enabling real time enrichment of collateral SSIs for margin calls. As a service of DTCC-Euroclear Global Collateral Ltd. joint venture, MTU is a core component of industry infrastructure which provides a straight-through solution to streamline the processing and settlement of margin and collateral.